KOSPI · 003830 · Chemicals · ₩003830

Daehan Synthetic Fibrer대한화섬

003830 · KOSPI · ₩003830 · 대한화섬

₩104,500▲ ₩200 (0.19%)End-of-day · Oct 30, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩21,749

vs the current price (₩104,500)

Enterprise value: −₩29B
Equity value: ₩29B
WACC: 7.3%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 79% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩104,500, the model needs an operating margin of 8.8% every year (it uses −0.9%).
Margins ranged from −6.7% to 4.2% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.
100% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.
The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.
Today's P/E is 11.3× against a typical 10.3× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩12,411; −88.1%
Base: ₩21,749; −79.2%
Bull: ₩41,515; −60.3%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (−0.9%).

Revenue growth

Revenue growth, year 1-10%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-6.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-3.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 4-0.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-10.5% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin-0.9%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation0.5%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending5.7%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital-4.2%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.01%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-30.
Beta0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.21, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.51%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩107B
Net debt (borrowings and leases − cash and deposits): −₩58B
Shares: 1,328,000
Share price: ₩104,500
Market cap: ₩139B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩134B	₩124B	₩108B	₩96B	₩90B	₩86B	₩86B	₩89B
Growth	−10.9%	−7.9%	−12.6%	−10.0%	−6.7%	−3.5%	−0.2%	3.0%
EBIT	₩2.4B	−₩1.5B	−₩7.3B	−₩864M	−₩806M	−₩778M	−₩776M	−₩800M
EBIT margin	1.8%	−1.2%	−6.7%	−0.9%	−0.9%	−0.9%	−0.9%	−0.9%
After-tax EBIT	₩1.7B	−₩1.1B	−₩5.3B	−₩626M	−₩584M	−₩564M	−₩563M	−₩580M
+ Depreciation	₩743M	₩575M	₩382M	₩480M	₩448M	₩432M	₩431M	₩444M
− Capital spending	₩10B	₩3.9B	₩6.7B	₩5.5B	₩5.1B	₩4.9B	₩4.9B	₩5.1B
− Working capital	₩31B	−₩44B	−₩3.1B	₩448M	₩270M	₩132M	₩7.3M	−₩109M
Free cash flow	−₩39B	₩40B	−₩8.4B	−₩6.1B	−₩5.5B	−₩5.2B	−₩5.1B	−₩5.1B
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	−₩5.7B	−₩4.8B	−₩4.2B	−₩3.8B	−₩3.6B

Terminal value −₩11B, worth −₩7.4B today: 25% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩548,530 a share)Now 0.19×	₩103,6530.19×	₩118,9040.22×	₩138,5810.25×
Price / earnings (last 12 months: ₩9,285 a share)Now 11.3×	₩42,4334.57×	₩95,97710.3×	₩259,84428.0×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
6.3%	₩20,708	₩20,249	₩19,685	₩18,976	₩18,056
6.8%	₩21,593	₩21,236	₩20,806	₩20,279	₩19,616
7.3%	₩22,365	₩22,082	₩21,749	₩21,348	₩20,856
7.8%	₩23,047	₩22,822	₩22,559	₩22,248	₩21,875
8.3%	₩23,659	₩23,476	₩23,267	₩23,023	₩22,735

Now (TTM)

Market cap: ₩139B
Enterprise value: ₩80B
P/E: 11.3×
P/B: 0.2×
P/S: 1.3×
EV/EBITDA: —
Dividend yield: 0.7%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩117,200	₩104,700	₩105,700	₩117,000	₩124,000
Market cap	₩156B	₩139B	₩140B	₩155B	₩165B
P/E	16.2×	—	13.5×	4.6×	6.8×
P/B	0.2×	0.2×	0.2×	0.2×	0.2×
P/S	1.4×	1.1×	1.0×	1.0×	1.4×
EV/EBITDA	—	—	23.5×	14.7×	34.8×
Dividend yield	0.6%	0.7%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Daehan Synthetic Fibrer	11.3×	0.2×	1.3×	—	0.7%
LG Chem	—	0.5×	0.3×	—	0.9%
Hanwha Solutions	—	0.5×	0.3×	—	0.0%
Hanwha	5.9×	0.4×	0.1×	—	1.5%
SKC	—	1.8×	1.7×	—	0.0%
KCC	0.9×	0.3×	0.5×	8.9×	0.0%
Kumho Petro Chemical	5.3×	0.4×	0.4×	—	1.6%
Similar companies (median)	5.3×	0.4×	0.4×	8.9×	0.4%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Daehan Synthetic Fibrer / 대한화섬 / 003830 / KRX:003830

Source: KRX statistical information